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SEOUL Cushman & Wakefield Global Cities Retail Guide Cushman & Wakefield | Seoul | 2019 0 Seoul is the driving force of the South Korean economy with the majority of wealth centered here. It is also home to global companies such as Samsung, Hyundai and LG. With such a concentrated mass of people this has been the entry point for all international retailers such as Uniqlo, Zara, H&M, Louis Vuitton, Gucci, Prada, Tom Ford, Ted Baker, Hollister and Burberry. South Korea currently stands as the fourth fastest growing luxury goods market in the world due to the number of tourists coming from mainland China and Japan. Korean culture has become a fascination in north and south east Asia and tourists flock here to experience this. Tourists also take advantage of lower import taxes and foreign exchange rates to come on shopping sprees for international fashion and cosmetic brands. This prompted Louis Vuitton to open up its first airport store in the world in the main international airport of Incheon. The appetite for international brands is huge and the highly fashion conscious men and women in Seoul are SEOUL obsessed with brands and the status boost that comes with it. As the majority of brands enter the market through Seoul, what is perceived as the “in thing” to have will OVERVIEW quickly spread to the rest of the country and brands use Seoul as a springboard to expand into the other major cities. Cushman & Wakefield | Seoul | 2019 1 SEOUL KEY RETAIL STREETS & AREAS Seoul consists of 5 main districts called Super Regional Submarkets. These Super Regional Submarkets draw consumers from broad regions and even from foreign countries, whereas the Regional Submarkets are retail districts that have developed over time in certain locations of Seoul for the general population in the immediate catchment area. MYEONGDONG GANGNAM STATION Myeongdong is the busiest shopping area in the country, Gangnam station is the newly constructed part of Seoul. anchored by two enormous department stores (Lotte and Between Gangnam Station and Shin-nonhyun Station, Shinsegae) offering luxury and mid-priced retail. Since there is a Gangnam Boulevard, which is approximately 2010 there has been a growing number of foreign tourists, 650m long and totals 8 car lanes. On the pedestrianised particularly Chinese and Japanese visitors. Besides the streets along the Gangnam Boulevard, there is a line up of tourists, office workers and residents also fill the significant retail flagship stores and cosmetics stores. The pedestrianised streets surrounding the department stores area surrounding the station is an important commercial which are the launching ground for most international and entertainment district. Further inside the area, brands and their flagship stores. As well as a huge consumers can find a variety of shops varying from small amount of cosmetic stores catering to the tourists, brands retail stores to fashion shops, shoe stores, casual such as H&M, Uniqlo, Zara, Forever 21, Mango, 8 restaurants, coffee shops, bars, movie theatres, VR cafés, Seconds, Nike and Adidas all have one or more street internet cafés and karaoke. Towards the end of Gangnam locations. The rental levels in Myeongdong are the highest Station, private education academic centres are found amongst Seoul’s high street locations due to strong inside several tall buildings. Due to the nature of the demand from large fast-fashion brands, global retail clientele and the high foot traffic, the area is a prime target brands, cosmetics and F&B alike. for mid-priced retailers. • Longest-standing retail trade area in Seoul. South of Gangnam Station, foot traffic is heavier as offices and clinics are located in the vicinity of the area. • A must-go site for tourists (4.6 million foreign tourists Corporate office buildings in this area include Samsung annually). Seocho Town, Meritz Tower and WeWork. There are 47 • Narrow, pedestrianised streets. conglomerates along with 1,200 small-medium sized business offices in this area. The working population • High concentration of fashion, F&B and cosmetic exceeds 160,000. brands. • Prime retail area in southern Seoul. • Vast foot traffic originating from all surrounding areas. • Energetic, vibrant retail area. • Hub of major fashion flagship stores, beauty & cosmetics, F&B and entertainment. Cushman & Wakefield | Seoul | 2019 2 SEOUL KEY RETAIL STREETS & AREAS HONGDAE GAROSUGIL Hongdae is a region known for its youthful and trendy Garosugil, a street in southern Seoul, has in the last ambience and underground culture. Located in west Seoul several years become the must-have location for retailers. near Korea’s most prominent fine art college, Hongik The attractive tree-lined street is full of affluent, trendy University, it has long been the playground for a large young women and men all looking to be seen and dressed number of artsy students and graduates. While the big in the coolest clothes. The popularity of the area has retailers targeting the youth markets such as Zara, Gap, caught the eye of retailers and an influx of new brands Nike, Adidas, H&M, and Kakao Friends are lined up along over the last several years has transformed the street, the main streets, small restaurants, coffee houses and with both global and domestic retail shops. In addition to night bars are located inside the Hongdae area, in a the first Maison Kitsuné store, which opened in October walkable urban-alley form of district. Under the influence 2018, there are a number of famous fashion flagship of Hongik University, the neighbourhood alley was stores including Apple Store, Zara, Massimo Dutti, Aland, developed on a foundation of artistic souls since the Shoopen, Lacoste, 8 Seconds, Hollister, Sixty Eight, 1990s. In the early days, the rent was affordable for the Michael Kors, Ralph Lauren, Descente, Mango, H&M and young graduates to experiment their artistic sense into Under Armour, to name a few. Various cosmetic brands running cafes and music bars. Not only those who are also located along the main streets such as Too Cool graduated from Hogik University, but other art school for School, Innisfree, Espoir, Belief, Laneige, Kiehls, graduates interested in running a small business, all Banila Co., VDL and more. Other retail shops include Zara gathered around the area and opened trendy cafes and Home, JAJU, Lush, Aesop, The Body Shop, L’occitane, music venues. However, as the area became more LOHBs and Olive Young etc. Further inside the area, popular, Hongdae street underwent gentrification like small casual restaurants and boutique coffee shops can other metropolitan areas in big cities. Many individual be found. shops were unable to afford the increased rent. They had • Boutique, trendy area often compared to SOHO in no choice but to be pushed out of the area and moved NYC. either north or south of the Hongdae area. • Narrow street dotted by trees along each side. • At least 4 major universities in the vicinity, the closest being Hongik University. • Wide avenue guarantees high visibility. • Youthful, energetic district that offers shopping as well • Accessible luxury brands, beauty & cosmetics, F&B as F&B and vibrant night-life entertainment. and entertainment. • Major gathering place for artists. • Major transportation hub. Accessible to and from all parts of Seoul and beyond. Cushman & Wakefield | Seoul | 2019 3 SEOUL KEY RETAIL STREETS & AREAS CHEONGDAM SOUTH WEST SEOUL Cheongdam in south east Seoul is the only location where The south west of Seoul has seen a lot of development, luxury high street retailing occurs. Luxury retailers must shifting from a fairly industrial area to a hub of shopping have their flagship stores here, and the boost to the malls including Times Square, D Cube City and IFC mall. brands stature is highly increased. Louis Vuitton was one The malls tend to be catered towards fast fashion brands of the first to arrive. Other large stores which are present with a high emphasis on additional attractions such as in the area are Hermes, Armani, Loro Piana, Zegna, large cinema complexes, hotels, concert arenas and Gucci, Carolina Herrara and Nespresso. Recent grand excellent F&B offerings. openings include Chloé, Chanel, and Rolls-Royce, while Louis Vuitton, and Loewe have had their stores renovated and extended. The area has very little foot traffic and the majority of people are driven or use the valet parking that all retailers offer. • The main luxury-exclusive retail high street in Korea. • Luxury flagship stores lined along either side of the main street. • Very low in foot traffic, since much of the visitors use vehicles to access stores. • Flagship stores primarily serve the function of brand presence exertion and advertisement. Cushman & Wakefield | Seoul | 2019 4 SEOUL MARKET OVERVIEW KEY AREAS/ TYPICAL RENT RANGE OF UNIT CONSUMER MAJOR RETAILERS NEW STREETS/ FOR UNIT PER 3.3 SIZES PROFILE PRESENT ENTRANTS SHOPPING CENTERS SQM (1PY) (1F NET SPACE) On Street: H&M, Zara, Uniqlo, Nike, Mass market, Seoul’s Adidas, Body Shop, Forever 21, New New Era, Ppierot busiest high street shopping Balance, Uniqlo, 8 Seconds, MLB, Shopping, Daniel 3,000,000 KRW/ py/ Myeongdong location. Two of the best North Face. 100 - 500 sqm Wellington, Givenchy month performing department Dept Stores: LV, Gucci, Prada, Beauty. stores also offering luxury. Burberry, Tiffany, Paul Smith, Gentle Monster, Jo Malone, Club Monaco. Mass market. Seoul’s Zara, Massimo Dutti, Under Armour, busiest subway station, Adidas, Nike, Uniqlo, Cath Kidston, 8 2,400,000 KRW/ py/ Gangnam Station Missha, Dynafit, 29CM. 100 - 500 sqm surrounded by large office Seconds, Shake Shack, Kakao month core. Friends, Chicor, New Balance. Trendy, young and wealthy Apple Store, Zara, Massimo Dutti, Maison Kitsuné, Yoshida customers. The street has Camper, Lacoste, MCM, Lush, Porter, Chicor, Tommy 1,200,000 KRW/ py/ Garosugil transformed in the last two Wonderbra, LOHBs, Guess, Michael Jeans, B.

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